an economics scrapbook

The face of the river, in time, became a wonderful book . . . which told its mind to me without reserve, delivering its most cherished secrets as clearly as if it had uttered them with a voice.
-- Mark Twain

Welcome to Summer Slam 2010! The crowd is abuzz with anticipation. Tonight is the night the reigning heavyweight champion defends his belt against a mysterious new contender in a knock-down-drag-out wrestling match for the coveted title of DR. DOOM. Electric guitars scream over the din of double base drums as the audience writhes in the pulse of the heavy beat. We’ve got ringside seats. A hush spreads over the crowd as the lights dim and the announcer takes the mic.

The crowd cheers wildly. No one is more pessimistic than Roubini. Who would dare to enter the lair of this dragon? A spotlight hits the back of the stage above the ring, and a great door slides open revealing nothing but darkness. The music shrieks and pounds louder. Suddenly a masked stranger steps from the shadowy space into the spotlight, seemingly taller than the door itself. He approaches the ring and with one arm swings up over the top rope, landing face to face with his contender. Who ever could this masked man be? The stranger pauses, breathing slowly, his hulking muscular form gleaming against the dark smokey backdrop. He reaches up slowly with one hand and tears the mask from his face, revealing his identity.

The glare of an enormous white smile sends a shock wave through the audience. Could it be…? Is it possible…? Before us stands none other than the king of personal power himself, motivational speaker and human potential coach Anthony Robbins! Fists pumping the air overhead, he circles to greet the whole audience with all the bravado and determination of a great warrior. Then, turning back to his opponent and adjusting the microphone on his headset, he bends and leans in to begin the match.

“Let’s get ready to rumble!”
The announcer steps away, and the fight is on.

Wow, and what a fight it turned out to be. Surely a night to remember. Roubini moving from overhead chop to stinger splash and Robbins countering with a flying clothesline. No one expected to see the stink face that night… and then both of them ending up in a double hair pull! It took twenty minutes for the ref to untangle them. We still don’t know what the outcome was. I suppose Robbins won, since he grabbed the belt and ran. The guy is unstoppable. However, the organization is still investigating whether or not he actually qualified in the first place. He’s not a licensed economist, after all. I’m sure everything will fall into place in time. As they say, it’s not about whether you win or lose, it’s how you play the game. These guys put on a hell of a show.

Anyone following economics will be familiar with Nouriel Robini’s pessimistic views of our future trajectory. He was one of the earliest economists to predict the housing bubble and economic crisis that would ensue. His predictions were initially met with skepticism and even disdain, earning him the nickname “Dr. Doom.” His latest book, Crisis Economics: A Crash Course in the Future of Finance, tells all. You can hear some of Nouriel Roubini’s current views in his latest interview on the Charlie Rose show. A link is provided below.

The surprise appearance in the doom-n-gloom arena is that of Tony Robbins. He has made a living cultivating the power of positive thinking. Can he really be pessimistic on the economy? The answer is yes. He warns of a major retraction ahead, describing this time as the beginning of an economic winter and urging us to steer clear of exposure to the stock and housing markets. But in perfect powerful and positive form he also looks at the crisis from a larger perspective, diminishing fear and pointing to opportunities that will arise out of the disaster. He even lays out a step-by-step plan to survive and emerge profitably from the dark times. As coach to some of the world’s most successful investors and business people he might just understand a thing or two about what’s in store and how to weather it.